Mexico is poised to take on an even greater role in the ongoing global supply chain rearrangement. Companies that are relocating some or all of their production to Mexico need to be aware of what is legally required to hire local staff in Mexico.

This article lays out the basics of Mexican employment law related to hiring employees: what constitutes an employment relationship in Mexico, the types of employees you can hire and the importance of having an appropriate Mexican employment contract with your Mexican employee. The article also describes the basic provisions your Mexico employment agreement should contain.

Mexico's Labor Environment

Mexico's employment laws' main goal is to balance production factors—the economic unit that produces or distributes goods and services—with social justice. Consequently, employees are deemed to be in the same position as the employer and the rights of each bear the same weight, and if they do not, the law will support employees. Always.

Types of Employees in Mexico

Mexico's employment laws do not differentiate between blue-collar and white-collar employees. However, they do make some distinctions as to employee type, such as the following:

• Employees in positions of trust (empleados de confianza). These are employees who perform general management, inspection, supervision and oversight tasks. The nature of an employee's tasks is what determines their category, not the employee's job title or position.
• Employees of any nationality who...

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